Business
Brunei Shell Agreement
Brunei Shell Agreement.
About this update from Plexus Holdings
[{"type":"text","content":"\n Plexus Holdings Plc\n06 June 2006\n\n Plexus Holdings PLC / Index: AIM / Epic: POS / Sector:\n\n6 June 2006\n\n Plexus Holdings PLC ('Plexus' or 'the Company')\n\n\n US$2.4 million Agreement with Brunei Shell Petroleum Sdn Bhd\n\n\nPlexus Holdings PLC, the AIM listed oil and gas engineering services business,\nhas agreed with Brunei Shell Petroleum Sdn Bhd ('BSP'), to supply high pressure/\nhigh temperature (HP/HT) rental exploration wellhead equipment, using the\nCompany's proprietary POS-GRIPTM technology, for a minimum of four wells. The\ntwo year project, worth over US$2.4 million, including service and support\ncharges, commences in November 2006. The Directors believe that the initial\ncontract, which is subject to completion of relevant contract terms, should lead\nto further orders both with Shell and in the region over the coming years.\n\n\nThis is the Company's first agreement for the supply of POS-GRIP equipment with\na Shell operating company, and is an important milestone in Plexus' declared\nstrategy of creating a new wellhead standard. The Directors believe that\nPlexus' POS-GRIP technology was chosen in preference to existing systems due to\nenhanced safety, time, and cost benefits, and that the quality of the project\nand the technical grounds on which the equipment was selected will further raise\nthe profile of the POS-GRIP method.\n\n\nThe 15,000 psi gas service wellhead systems to be supplied to BSP are designed\nfor high temperature service. This type of technology, which is often needed on\ndeep, prolific production wells, fits into a sector of the market where Plexus\nis currently particularly active. During the critical flow testing phase of\nthese wells, the system relies on proprietary POS-GRIP HG TM metal seals for\nsuperior integrity.\n\n\nThe POS-GRIP method of engineering for wellheads and connectors involves\ndeforming one tubular member against another to effect gripping and sealing\nwithin the elastic range, and has many advantages in dealing with the high\nforces associated with the HP/HT oil and gas environments for which there is\nincreasing global demand due to the strong energy appetite and need to explore\nfor oil and gas in ever more challenging locations.\n\n\nThis development further reduces the Company's dependence on the North Sea and\nwill in the future help it avoid the ongoing ...